Oando to raise N54.6b from capital market

OANDO Plc has concluded plans to raise N54.6 billion right issue through the issuance of 4,548,236,276 ordinary shares of 50 kobo at N12.00 per share.
The Rights Issue exercise, according to reports would open on Friday, 28 December, 2012 on the Nigerian Stock Exchange and January 4, 2013 on JSE Limited. It would close on Wednesday, February 6, 2013 on both Exchanges.
The lead issuing house is Vetiva Capital Management Limited, with FBN Capital Limited and FCMB Capital would act as Joint Issuing Houses.
According to the Nigerian Stock Exchange, the right issue, which opened on December 28, 2012, on the basis of two new ordinary shares for every ordinary share of 50 kobo each held as at the close of business on Friday, October 19, 2012 is for those shareholders whose names appear on the register of members and transfer books of the company which are maintained in Nigeria, as well as, shareholders, whose names appear on the register of members and transfer books of the company, which are maintained in South Africa as at the close of business on the Friday prior to the issue opening date, January 4, 2013.
Wale Tinubu, group chief executive, Oando Plc said, “we are happy to announce the opening of our Rights Issue offering, in line with our corporate strategy for balance sheet optimisation and the financing of growth initiatives in the upstream sector.
“Pursuant to the recent signing of agreements by our affiliate OER with ConocoPhillips, to acquire their entire Nigerian Asset base for $1.79 billion plus customary adjustments, OER will be transformed from a small size oil company with 4,500 bbls/day of projection and 9 million barrels of oil equivalent (“MMboe”) to a midsize with close to 50,000bbls/day of production with 2P reserves of 213 MMboe and 2C reserves of 198 MMboe, with significant risked resources.”
“The successful outcome of the Rights Issue will position Oando Plc to increase value for shareholders in the Upstream through focused portfolio growth in production, cash margins and improved returns on capital deployed. We count on the consistent support of our shareholders to seize the opportunity to take up their rights and benefit from the higher margin value creation the Upstream offers,” he said.
>Oil and Gas Press